Retail discounters and e-commerce dominate the growth of South Africa's retail sector
New data from Trade Intelligence reveals key shifts in South Africa's FMCG retail landscape, with discounter and e-commerce formats outperforming other channels in 2024.
Despite easing inflation, South African shoppers remain under economic pressure, leading to changing missions, increased cross-channel behaviour, and format diversification among major retailers.
According to Trade Intelligence's latest modelling, outlined in its newly released SA FMCG Market Size and Channel Report, total FMCG retail sales grew +6.9% in 2024, with performance supported by footprint expansion in the corporate retail sector and a strong final quarter, buoyed by interest rate cuts and early withdrawals under the country's two-pot retirement system.
'Retailers are pursuing growth by diversifying format strategies and moving into new spaces,' says Carey Leighton, economist at Trade Intelligence.
'We're seeing a continued push into the discounter and e-commerce channels, all in an effort to meet shoppers where they are.'
Shopper strain persists despite lower inflation
While the official food inflation rate dropped to +4.5% in 2024 — down from +10.8% in 2023 — household pressure remains high.
Data from the Pietermaritzburg Economic Justice & Dignity Group (PMBEJD) show that the cost of a basic food basket has risen +26% since 2021, leaving many South Africans with less disposable income and prompting shifts in how and where they shop.
Retailers and suppliers are responding by intensifying promotions, refining pack sizes, and rethinking pricing architecture across channels.
Format evolution: focus on discounters and e-commerce
Discounters (i.e., players such as Boxer, Usave, and SaveMor) recorded high year-on-year growth at +13.9%.
While still relatively small in total market share, discount formats are gaining momentum across income groups, led by aggressive expansion.
At the same time, FMCG e-commerce remains the fastest-growing channel, albeit off a small base.
Trade Intelligence estimates online FMCG growth at +40% year-on-year, driven largely by the expansion of on-demand platforms like Checkers Sixty60, PnP asap!, Spar2U and Woolies Dash.
Supermarkets hold dominance, but pressure is mounting
Supermarkets continue to be the largest channel in South African FMCG, with over half of spend flowing through this format. However, growth within the supermarket channel is uneven.
According to Trade Intelligence's data, premium supermarkets outperformed value supermarkets in 2024, reflecting the pressure felt by value-seeking shoppers who are also shopping at Discounters and Informal Retail (spaza shops, etc.).
Informal retail still holds ground
Despite rapid corporate expansion, the informal retail sector remains a significant player in South Africa's FMCG environment.
Trade Intelligence reports +5.2% growth in the informal space in 2024, with proximity and convenience continuing to drive shopper loyalty.
Spaza shops and township outlets have retained relevance, particularly for small, frequent shopping missions and cash-based shoppers.
However, the sector faces rising regulatory and infrastructure challenges, as well as increasing competition from the corporates, which may affect growth in the medium term.
Implications for retail strategy
The picture is one of increasing channel blurring, with formats evolving rapidly in response to both shopper needs and retailer ambitions. Format strategy, route-to-market planning and shopper engagement tactics are being reevaluated across the board.
These dynamics are unpacked in greater depth in Trade Intelligence's newly released SA FMCG Market Size and Channel Report, which provides sector, channel and sub-channel sizing as well as future forecasts.
'South Africa's FMCG market, sectors, channels, and sub-channels are as complex and dynamic as the shoppers in them,' says Leighton. 'Understanding is vital for building retail channel and format strategies.'
All rights reserved. © 2022. Bizcommunity.com Provided by SyndiGate Media Inc. (Syndigate.info).
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Zawya
31 minutes ago
- Zawya
TECNO Continues the Partnership to Become Official Global Partner of Africa Cup of Nations (AFCON) 2025 and 2027, Fueling the Dream of Africans Through Football
Innovative AI-driven technology brand TECNO ( today announced that it is strengthening its already close relationship with the Confederation of African Football (CAF) by becoming the Official Global Partner of the TotalEnergies CAF Africa Cup of Nations, Morocco 2025 and TotalEnergies CAF Africa Cup of Nations, KE- UG - TA 2027, bringing its 'Stop at Nothing' spirit to the continent's fans for years to come. The announcement follows TECNO's successful sponsorship of the tournament in 2023 when it became exclusive smartphone sponsor for the event. TECNO's role as Official Global Partner and Official Smartphone and Exclusive Partner in the Smartphone category enables the company to further extend its 'Stop at Nothing' brand promise by deepening its engagement and enhancing its visibility. The brand also benefits from additional media and social media activation rights that will enable it to better connect with young people, share the joy of football, and nurture a shared spirit of daring and progress. The Vice President of Transsion Holdings, Benjamin Jiang said: 'This renewed partnership is a testament to the deep trust and shared success we've built with CAF. In our previous collaboration, we witnessed how football ignited passion and inspired dreams, and how AI-powered smart technologies became powerful tools to connect and empower millions across why this partnership goes beyond the game—it stands as a symbol of ambition and a platform where young people can shine, united by an unstoppable spirit of progress. It reflects our shared vision of harnessing AI-driven innovation to shape a brighter future for Africa. This renewed collaboration marks a significant milestone in TECNO's journey forward.' In addition, TECNO will continue its Dream on the Field Renovation Campaign in cooperation with CAF, launched in 2024. The philanthropic initiative aims to bring more empowerment to African football through technology and to foster youth engagement by improving access to quality playing fields in underserved communities, reflecting TECNO's enduring 'Stop at Nothing' ethos. Véron Mosengo-Omba, CAF General Secretary, said: 'TECNO's longstanding support for football in Africa has had a meaningful impact on the development of the sport. As the highest-profile football tournament on the continent, the Africa Cup of Nations symbolizes passion and the achievement of life-long dreams, resonating with young people's hope for the future and spirit of exploration. Deepening this partnership will help to ensure that AFCON 2025 and 2027 reach new heights of excitement to delight football fans.' The partnership represents a milestone for TECNO in further strengthening its emotional bond with younger generations by empowering them to achieve more possibilities, building on its position as a leading brand among the entire African continet through its imaging technology, product performance and design aesthetics. For any related media queries, please contact Distributed by APO Group on behalf of TECNO Mobile. About TECNO: TECNO is an innovative, AI-driven technology brand with a presence in over 70 markets across five continents. Committed to transforming the digital experience in global emerging markets, TECNO relentlessly pursues the perfect integration of contemporary aesthetic design with the latest technologies and artificial intelligence. Today, TECNO offers a comprehensive ecosystem of AI-powered products, including smartphones, smart wearables, laptops, tablets, smart gaming devices, the HiOS operating system, and smart home products. Guided by its brand essence of 'Stop At Nothing,' TECNO continues to pioneer the adoption of cutting-edge technologies and AI-driven experiences for forward-looking individuals, inspiring them to never stop pursuing their best selves and brightest futures. For more information, please visit TECNO's official site:
Zawya
18 hours ago
- Zawya
Minister Dion George to sign Landmark Biodiversity Beyond National Jurisdiction Agreement on behalf of South Africa at the 2025 United Nations Oceans Conference in France
The Minister of Forestry, Fisheries and the Environment, Dr Dion George, will be attending the third United Nations Oceans Conference (UNOC3) in Nice, France and will on 9 June 2025, sign the Biodiversity Beyond National Jurisdiction (BBNJ) Agreement on behalf of South Africa. Co-hosted by France and Costa Rica, UNOC3 seeks to accelerate global action to conserve and sustainably use the ocean, in support of Sustainable Development Goal 14: 'Life Below Water'. This year's conference theme is Accelerating action and mobilizing all actors to conserve and sustainably use the ocean with three main priorities: (1) Advancing multilateral ocean processes and ambition; (2) Scaling up financing for ocean sustainability and blue economies; and (3) Strengthening marine science, knowledge-sharing and decision-making. Minister George and the other Member States are scheduled to formally sign the BBNJ Agreement during a high-level signing ceremony convened by the UNOC3 Secretariat. 'Signing the BBNJ, which is a crucial agreement geared toward strengthening governance in areas beyond national jurisdiction, will mark a significant milestone in the country's ocean governance journey and a reflection of our resolve to contribute meaningfully,' said Minister George. South Africa has developed a robust suite of legal frameworks, aligned with its obligations under the United Nations Convention on the Law of the Sea (UNCLOS). These include the National Environmental Management Act, the Integrated Coastal Management Act, the Marine Spatial Planning Act, the Marine Living Resources Act, the Biodiversity Act, and the Protected Areas Act. These instruments collectively provide for the sustainable use, spatial planning, and protection of marine ecosystems within national jurisdiction. South Africa also actively participates in regional fisheries management organizations (RFMOs), such as the Indian Ocean Tuna Commission (IOTC), promoting cooperative, science-based management of shared marine resources. 'In line with our local legal frameworks, the signing of the BBNJ will bolster global ocean governance and help advance our efforts to build our economy, while fiercely protecting our ocean,' said Minister George. South Africa is ahead of the curve because in line with the global efforts to protect the ocean, on World Environment Day, the Minister launched South Africa's inaugural Climate Change Coastal Adaptation Response Plan (CARP). CARP is a groundbreaking climate change national adaptation strategy which seeks to secure the future of South Africa's coastlines and the millions who depend on them. 'Our coastline or coastal cities are at the frontline of climate change, facing severe and multifaceted complexities that threaten livelihoods, communities, economies, infrastructure, and ecosystems,' said Minister George during the launch. In the build up to UNOC3, Minister George will also participate in the Blue Economy and Finance Forum, which is a high-level platform to showcase innovation and finance for ocean-based growth, taking place in Monaco on 7-8 June 2025. The Forum will highlight and promote the critical role that sustainable investment, cutting-edge innovation, and forward-thinking policies play in ensuring the long-term health and prosperity of our oceans and economies alike. Minister George highlighted that the Forum is a vital platform for South Africa, as our ocean and blue economy is a key driver of economic growth, job creation, and sustainable development. 'Scaling up financing for ocean sustainability and blue economies is one of the key priorities of the UNOC3 and the Forum thus becomes an integral space for us to advance our economic growth and job creation prospects,' said Minister George. Distributed by APO Group on behalf of Republic Of South Africa: Department of Forestry, Fisheries and the Environment.
Arabian Business
20 hours ago
- Arabian Business
UAE shoppers want 1-click, biometric checkouts for safer online payments: Visa
Consumers across the UAE are calling for more secure and seamless online shopping experiences, according to Visa's latest Checkout Friction Report. Despite the rapid growth of ecommerce and digital adoption in the region, key challenges at the checkout stage continue to hinder consumer satisfaction and business performance. Based on a survey of more than 2,000 online shoppers across the GCC, the report shows that security concerns and complex payment steps are the top barriers to smooth transactions. Online shopping in the UAE In the UAE, 40 per cent of shoppers cite fear of fraud as their biggest concern, while 37 per cent are frustrated by the need to repeatedly enter card details. Shopping frequency is high, with one in three UAE consumers buying groceries online multiple times a week, and categories like fashion, entertainment, and electronics seeing regular purchases monthly. However, friction during checkout can lead to abandoned carts and lost revenue for retailers. Visa's research underscores a growing preference for advanced payment technologies. A significant 67 per cent of UAE shoppers said they would adopt biometric authentication like fingerprint or face ID to check out online. Additionally, 65 per cent support a unified registration process for digital payments across websites. The report also highlights that 82 per cent of consumers would shop online more frequently if one-click checkout options were widely available, and 66 per cent are likely to use Visa's 'Click to Pay with Biometrics' feature. This solution simplifies online shopping by eliminating manual card entry, using secure device-based biometric authentication to speed up and protect the transaction process. Salima Gutieva, Visa's VP and Country Manager for UAE, said: 'Challenges in the online checkout process have direct implications for businesses, resulting in lost revenue, and hampering both customer acquisition and retention. 'Today's consumers expect – and deserve – a more seamless and secure eCommerce experience. That's why Visa is working with partners to enable solutions like Click to Pay, which leverages biometrics and tokenisation to eliminate key pain points and deliver a more convenient shopping experience.
